JMJA and Associates LLP

While there are confusion prevailing over What next after disqualification of Directors? MCA is yet to come out with any official clarification on it. There are many companies which are affected due to the steps taken by MCA. While, the action by MCA was very clear that all the Directors who are disqualified will not be able to work as a Director and their respective DIN will be disabled for a period of 5 years. Many senior professionals have opined that such disqualification will not amount to automatic vacation of office of directorship from other companies.  While we await further clarification from MCA on its stand on disqualification of Directors under Section 164 and disability of DIN. The notice at ROC office makes one thing clear, an Active Company (the one that is not struck off by ROC), can appoint new Director on their Board from Back end. While generally appointing a Director in active company is simple and can be given effect by filing eForm DIR-12 i...

The Ministry of Corporate Affairs (MCA), on Monday invited public comments for further simplification of starting a business (name reservation and incorporation) procedure in India.  This is in terms with the Governments initiative to improve the ease of doing business, by simplifying the procedures and reduce the fees for incorporation of company in India. This is implemented through e-governance initiatives such as the MCA21 portal and SPICe (Simplified Proforma for Incorporating Company Electronically) forms. According to the Ministry, these reforms that have been undertaken have helped in reducing the procedures for starting a business in India and provide Ease of Doing Business.  Recently, the fee for incorporation (of the integrated e-Form SPICe /INC-32) has been reduced from INR 2,000 to INR 500. The cost incurred by a company for a company seal is also eliminated as the requirement for a company seal has  removed vide amendment to the Companies Act,...

The Ministry of Corporate Affairs (MCA) has issued   General Circular No 10/2017   Dated 13.09.2017  and made Clarification in Rule 4 of  Companies (Indian Accounting Standards) Amendment Rules 2016. MCA has clarified that If any Holding Company is Covered by Corporate Sector Roadmap for implementing  IND AS,  then that Company shall follow the Corporate Sector Roadmap , and Such Holding Company having a Small Finance Company or Payment Bank as its  Subsidiary , Then Such Subsidiary Shall follow the Corporate Sector Roadmap and Provide Finance Statement to its holding company  For Consolidation of Financial Statement. 

In exercise of the powers conferred under sub-section (1) of section 469 read with section 212 of the companies Act, 2013 (18 of 2013), the central Government issued companies (Arrests in connection with Investigation by serious Fraud Investigation Office) Rules, 2017. The rule authorizes the Director, Additional Director or Assistant Director of Serious Fraud Investigation Officer (SFIO) investigating into the affairs of a company other than a Government Company or foreign company to arrest any person who has been guilty of any offence under Section 212 of the Act. The Rule further provides that the provisions of the code of criminal Procedure, 1973(2 of 1974), relating to arrest shall be applied mutatis mutandis to every arrest made under this Act. Copy of Rule can be accessed from following link: http://mca.gov.in/Ministry/pdf/companiesArrestsconnectionSFIORule_25082017.pdf Note: Rule will be effective from the date of publication in t...

What is Website? A Website is a set of related web pages located under a single domain name. Commonly it is also known as virtual address and website of a Company gives company a virtual existence on the internet. In current world, having a website is must for every Business. The Internet has grown at an incredibly fast speed, reaching 3.68 billion users (40% of world’s population) by December 2015. Today, it is almost criminal for a business to not be online. Does Companies Act, 2013 mandates Company to have its own website like Registered Office address? Answer is NO. It is not mandatory for Company to have its own website. The Companies Act, 2013, Rules or notification issued under the Companies Act, 2013 does not mandates the Company to have its own website. However, for Listed Companies, Securities and Exchange Board of India (SEBI), has made it mandatory to maintain a functional and updated website with effect from April 2011 [Initially under Listing Agreement and t...

Elbert Hubbard, an American writer, once said "Responsibility is the price of Freedom." While the corporate expects government to give more freedom to facilitate ease of doing business in India, Government of India is ensuring Companies who gets exemptions (freedom) from stricter compliance do its part of filing on time.  Prime Minister Modi on July 1, 2017 at CA day announced and which was later confirmed by FM Arun Jaitley in Parliament, registration of nearly 1.62 lakh companies were cancelled by Ministry of Corporate Affairs (MCA). In a follow up suit SEBI recently banned 331 so called 'Shell Companies' from trading on Stock Exchanges. The criteria for Shell Companies were not very clearly defined but it is understood that any Companies, which has not filed its Annual Filing Forms (Form AOC-4 Balance Sheet and/or Form MGT-7 - Annual Return) for period of 2 or more year is considered as a Shell Company automatically. MCA, had issued notices to all suc...